An earlier than expected US recovery this year looks set to lead to knock on growth in world markets, predict fund managers.
In anticipation Aegon Asset Management has swapped £85m from mixed asset classes into US equities within its balanced managed fund.
Aegon Asset Management head of investment strategy Alistair Byrne saw lower interest rates, tax cuts, falling energy prices and aggressive cost cutting by company management as reasons for the improvement.
Byrne said: “Although stock markets have been under pressure recently, with investors continuing to fret about the absence of signs of recovery in the global economy, we believe the outlook for equities is positive.”
Byrne pointed out too that the US was the first major economy to slow but was now in a favourable position to become the first to show recovery.
Swiss Life Asset Management also announced last week that its own research indicated that the beginnings of a US recovery this year would lead the world out of recession.
Swiss Life Asset Management associate director for marketing communications David Holloway said: “We have seen a slight improvement in market conditions in the US which gives us confidence for world markets in general.”
“We feel now the conditions are right for a recovery.”
By David Rowley
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.
An independent expert panel will be commissioned to review how the £6.1bn funding deficit figure for the Universities Superannuation Scheme (USS) was reached, Universities UK (UUK) has announced.